INDONESIAN, M'SIAN CPO PRODUCERS TO TAKE ON NEGATIVE CAMPAIGN

Jakarta, March 6 (ANTARA) - Indonesian and Malaysian CPO (crude palm oil) producers are cooperating to take on negative campaign that could hinder developement of the industry in the two countries.

The two countries' producers signed a memorandum of understanding for it here on Friday night, witnessed by Indonesian agriculture minister Suswono and Malaysian minister of plantations companies and commodities, Tan Sri Bernard Dompok.

"The cooperation is aimed at wiping out negative campaign about palmoil," Suswono said after the signing of the MOU by the Association of Indonesian Palmoil Producers (GAPKI) and the Malaysian Palmoil Association (MPOA).

Also participating in the cooperation are the Association of Indonesian Oilpalm Farmers (APKASINDO), the Association of Serawak Oilpalm Plantation Owners (SOPPOA), the Federal Land Development Authority (FELDA) and the Association of Malaysian Plantations Investors in Indonesia (APIMI).

Suswono said Indonesia and Malaysia are the world's biggest palmoil producers contributing 85 percent of the world's CPO production and if united are capable of becoming a price determinator.

He said CPO industry is currently facing negative campaign particularly in Europe that it is damaging forests. In view of that Indonesia and Malaysia must work together to take on the campaign from non-governmental organizations.

"After the signing of the MOU a taskforce will work intensively to assure that the industry has been conducting the best practice to assure sustainable development.

He said he hoped an independent institution could be set up to assess, in case of a negative report from a NGO, if a company has conducted an unsustainble palmoil industrial development.

So a case like a unilateral cessation of a contract like the one by Unilever will not happen again, he said.

Minister Tan Sri Bernard Dompok meanwhile said Indonesia and Malaysia as the world's biggest producers have a strong position in the Roundtable Sustainable Palm Oil (RSPO) forum.

"Without MPOA and GAPKI, the RSPO will break up. That is our bargaining position," he said.

He said NGOs would certainly not want the RSPO to break up because they have an interest in it.

GAPKI chief Joefly Bachroeny meanwhile said CPO producers are in solidarity to take on pressures from within the RSPO forum or other international forums in connecton with issues like sustainable palmoil industrial development and green house gases.

"Therefore the cooperation (between Indonesian and Malaysian CPO producers) must be more concrete, well-planned and systematic," he said.

MPOA chief Dato Mohamad Saleh said CPO producers must be alert in dealing with other environmental issues to be developed by NGOs such as indirect land use.

Indonesia's CPO production last year topped 20 million tons and it is projected to reach 40 millions in 2020.